Abstract

Sustainability is about the preservation of economic growth, social justice and environmental resources. Sustainable innovation is innovation, which furthers the continuation of these three pillars. Business traditionally focuses on the financial pillar, making this its top priority. Since this is the case, is there a financial argument (business case) for innovation, which also furthers the development of the other two pillars in the consumer electronics retailing industry?

This question begins to be answered through interviewing the managing director, the fleet manager and an area manager of Hughes Electrical, an independent retailer based in East Anglia. A semi-structured interview reveals that there is a business case for sustainable innovation in limited circumstances, where it aims to serve the market for materials such as waste polystrene, cardbard and unwanted electrical appliances. In some circumstances the viability of such investments are contingent on variables such as company size (it may be more viable for larger firms) and government grants being available (their presence makes projects more attractive).

There is evidence that sustainable innovation might reduce retailers' costs considerably. However, there may be some costs attached to such savings, which need to be weighed against the benefits.

The conclusion is that government through legislation and grants may have to continue to encourage business to become increasingly sustainable, as there appears to be limited financial incentive to do so otherwise.